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By Bill J Mitchell

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Attributes of Good Governance Governance is not a project management function or activity, nor is it an additional layer of decision making. Good governance is all of the following: ■■ An explicit organizational structure that enhances accountability ◆◆ The structure encourages adherence to designated authority, check points, and communication lines. ◆◆ Processes are not mere formalities to mark compliance. ■■ An objective monitoring process that can impartially assess investment readiness ◆◆ Facts and data drive decision making.

A concrete cylinder and its follow-up repeat cylinder failed the quality test. The concrete was replaced, even though this delayed the overall schedule and caused the loss of the project team bonus. ■■ A reportable, mandated environmental test on a protection device failed. The failed test was not, as suggested, deleted from the record. It was reported, and a fine ensued. Copyright © 2015 Society for Mining, Metallurgy & Exploration Inc. All rights reserved. Chapter 2 22 Data reporting can also present difficult ethical decisions: ■■ If a feasibility study is claimed to be complete, but there is insufficient engineering performed to support the design or costs, the study should not be accepted.

The project team initiates validation of the opportunity. Most activity relates to the collection and analysis of existing data (with the main exception being any exploration effort—where generally new data are created). Wherever data do not exist, a judgment call must be made. Thus, the caliber and experience of the personnel undertaking the scoping evaluation have to be superior. The scoping evaluation is the first step in the project management process. It is the first critical financial analysis of the opportunity by in-house staff who will determine whether the opportunity is potentially economically viable.

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Advanced Oil Well Drilling Engineering by Bill J Mitchell

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